Key facts
- Lowest corporate tax
- Dubai: 0% up to AED 375,000, 9% above
- No personal income tax
- Dubai
- EU membership
- Cyprus only
- Foreign income not taxed
- El Salvador, since 2024
- Days for tax residency
- Cyprus 60 with conditions; UAE 90 with conditions, or 183; El Salvador more than 200 in a row
The three countries side by side
| Cyprus | Dubai (UAE) | El Salvador | |
|---|---|---|---|
| Corporate tax | 15% | 0% up to AED 375,000, 9% above; 0% for qualifying free zone income | 30% (25% up to USD 150,000) on Salvadoran income; foreign income not taxed |
| Tax on dividends you receive | 0% defence tax for non-doms for 17 years, extendable, plus 2.65% GESY; 5% if Cyprus-domiciled | None | Foreign dividends not taxed |
| Personal income tax | 0% up to €22,000, then 20% to 35% | None | Salvadoran income taxed; foreign income not taxed |
| Days to be tax resident | 183, or 60 with conditions | 183; 90 with status and ties; or centre of life | More than 200 consecutive days, or main income source there |
| Residency for investors | Permanent residency from €300,000 plus VAT (non-EU) | Golden visa with property from AED 2 million | Investor and other residencies; 90 days a year for temporary residents |
| EU member | Yes | No | No |
| VAT | 19% | 5% | 13% |
| Currency | Euro | Dirham, pegged to the US dollar | US dollar |
Choose Cyprus if…
- Your clients, staff or partners are in Europe and an EU company opens doors for you.
- You want a holding company that receives dividends from subsidiaries and sells shares tax-efficiently.
- You want to live in the EU and spend part of the year elsewhere: the 60-day rule makes that possible.
- You come from a country where moving inside the EU softens the exit tax, as in Spain.
Read the complete Cyprus guide.
Choose Dubai if…
- You want to pay no personal income tax at all, on salary or dividends.
- Your company serves international clients and can qualify as a free zone company, or its profit is modest enough to stay largely within the 0% band.
- You are ready to live there for a real part of the year and build substance: office, visas, local bank account.
Read the complete Dubai guide.
Choose El Salvador if…
- Your business is digital or service-based and your clients are abroad.
- You live from foreign dividends, interest or investments.
- You value the US dollar, the cultural closeness to Spain and Latin America and a fast route to citizenship.
Read the complete El Salvador guide.
What decides it in practice
Tax rates are the easy part. Four questions usually settle the choice:
- Where are your clients? Selling inside the UAE requires a mainland company; selling inside El Salvador is taxed there; selling across Europe is easiest from Cyprus.
- Where will you really live? Without moving your own tax residency, a foreign company is exposed to your home country's rules on management and on controlled foreign companies.
- What does your home country charge you to leave? The exit tax on your shares can outweigh years of savings. See our exit tax guide.
- How much substance can you afford? Office, directors, staff and real decisions in the country. The lower the tax, the closer the scrutiny.
That is exactly what we analyse in the free assessment: your origin, your structure and your plans, before recommending a country.
Frequently asked questions
Is Cyprus or Dubai better for a company?
Dubai has the lower corporate tax and no personal income tax. Cyprus has 15% corporate tax but is in the EU, has a wide treaty network and charges non-dom residents no defence tax on dividends, only the 2.65% health contribution. For a business with European clients and staff, Cyprus is often more robust; for an owner willing to live in the Gulf and serve international clients, Dubai usually costs less.
Which country requires the fewest days of presence?
Cyprus allows tax residency with 60 days a year if you meet its conditions. The UAE recognises 90 days only together with nationality or residence status and a home, job or business there; for a tax residency certificate under a treaty, the Federal Tax Authority generally looks for 183 days. El Salvador asks temporary residents for 90 days a year, while tax residency there means more than 200 consecutive days.
Can I combine Cyprus and Dubai?
Yes, and it is common: for example, an operating company in Dubai and a holding company in Cyprus, or the reverse. What matters is that each company has real management and activity where it is registered and that the flows between them follow transfer pricing rules.
Which is best for someone coming from Spain?
It depends on the case. Cyprus is inside the EU, which matters for Spain's exit tax: moving to another EU country allows a special regime that avoids paying it on departure. The UAE is outside the EU, but is not on Spain's list of non-cooperative jurisdictions. El Salvador has a double tax treaty with Spain, and Spanish nationals can naturalise there after one year of residence.
Official sources and references
- EY Global Tax News: Cyprus enacts major tax reform legislation (January 2026)
- Deloitte Middle East: UAE small business relief
- EY: UAE guidance on tax residency for individuals
- PwC Worldwide Tax Summaries: El Salvador, taxes on corporate income
- IMI Daily: El Salvador cuts the residency presence requirement to 90 days (March 2026)
Figures reviewed on the date shown above. Rules change: always check the source.
This guide is general information, not tax or legal advice. Every case needs individual analysis.